Tuesday, March 17, 2015

Natural resources conglomerate Freeport-McMoRan Inc has hired Goldman Sachs Group Inc and Barclays Plc to help find private equity firms that will finance some of its projects, according to people familiar with the matter. The move comes two years after Freeport acquired Plains Exploration & Production Co and McMoRan Exploration Co for $19 billion, including debt, in a bid to diversify into the U.S. energy industry as the copper sector's prospects waned.With crude oil prices down from $100 per barrel to a six-year low of $44 per barrel, that strategy has backfired. Not only is less cash generated from the oil and gas assets to fund Freeport's mining projects, but the company now has to find ways to finance the development of assets it acquired.Faced with a 20 percent drop in copper prices in addition to the 50 percent decline in oil prices, Freeport said in January it was looking for partners to help provide funding for its capital expenditure in the Gulf of Mexico.Freeport is now speaking to the world's largest private equity firms, including Blackstone Group LP, Apollo Global Management LLC and Warburg Pincus LLC, about such partnerships, the people said this week.

Apollo Global Management, LLC (Apollo) is an investment manager. Shares of APO fell by 2.02% or $-0.46/share to $22.29. In the past year, the shares have traded as low as $20.02 and as high as $32.75. On average, 1172760 shares of APO exchange hands on a given day and today's volume is recorded at 751100.

Barclays PLC is global financial services provider. Shares of BCS fell by 0.99% or $-0.15/share to $14.95. In the past year, the shares have traded as low as $13.27 and as high as $17.90. On average, 2657380 shares of BCS exchange hands on a given day and today's volume is recorded at 2669807.

Blackstone Group LP (Blackstone) is an asset manager and provider of financial advisory services. Shares of BX fell by 0.63% or $-0.24/share to $38.08. In the past year, the shares have traded as low as $26.56 and as high as $39.62. On average, 4139630 shares of BX exchange hands on a given day and today's volume is recorded at 2613749.

Freeport-McMoRan Inc. is a natural resource company with an industry portfolio of mineral assets, oil and natural gas resources and a production profile. Shares of FCX fell by 3.06% or $-0.55/share to $17.42. In the past year, the shares have traded as low as $16.43 and as high as $39.32. On average, 19141500 shares of FCX exchange hands on a given day and today's volume is recorded at 20515808.

The Goldman Sachs Group, Inc. (Goldman Sachs) is a global investment banking, securities and investment management company. Shares of GS fell by 0.69% or $-1.33/share to $190.57. In the past year, the shares have traded as low as $151.65 and as high as $198.06. On average, 2749700 shares of GS exchange hands on a given day and today's volume is recorded at 1880463.

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